Transcript of IMF Press Briefing

IMF News, November 4, 2021

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• Published: November 4, 2021

Major multilateral events and IMF engagement

• G20 Leaders Summit:
  • Welcomed the "$650 billion SDR allocation from the IMF" (implemented over the summer).
  • Noted "recent pledges of about $45 billion dollars" as a step towards a "total global ambition of $100 billion of voluntary contributions for countries most in need."
  • Welcomed ongoing work to significantly scale up the IMF's Poverty Reduction and Growth Trust (PRGT).
  • Endorsed establishment of a new Resilience and Sustainability Trust (RST) to provide affordable long-term financing to help vulnerable countries, including in Africa, small island developing states, and vulnerable middle-income countries.
• COP26 (Glasgow):
  • IMF participation in events on adaptation in Africa, Carbon Pricing, mobilizing the private sector towards net zero.
  • IMF promoted staff proposal on the international carbon price floor and published related climate research on IMF.org.
• IMF upcoming events mentioned:
  • Jacques Polak Annual Research Conference (Gita Gopinath in discussion with Raghu Rajan at "11:00 o'clock this morning").
  • Virtual panel on Africa and tax avoidance in mining moderated by Antoinette Sayeh ("8:00 o'clock until 9:00 tomorrow").
  • Panel with Kristalina Georgieva on European Union budget ("Monday").
  • Panel on managing technology and finance with Bo Lee ("November 10th").
  • Kristalina Georgieva at the Paris Peace Forum (virtual, discussing SDRs and pandemic response) ("a week today" relative to briefing; referenced as "next Thursday").
  • APEC Leaders Meeting participation (virtual, chaired by Prime Minister Jacinda Ardern of New Zealand) on "Friday, November the 12th".
  • Annual Statistical Forum on measuring climate change on "November 17 and 18".

Special Drawing Rights (SDRs), trust funds, and financing initiatives

• "$650 billion SDR allocation" implemented over the summer.
• Voluntary channeling efforts:
  • Recent voluntary pledges of "about $45 billion dollars".
  • G20 characterized a "total global ambition of $100 billion of voluntary contributions".
• Trusts and facilities:
  • Work to scale up the Poverty Reduction and Growth Trust (PRGT).
  • Endorsement of a new Resilience and Sustainability Trust (RST) for long-term affordable financing.

Climate commitments and country reactions

• India:
  • IMF "welcome[s] India's announcement at the COP26 of new targets to increase reliance on renewables and reduce the carbon intensity of its economy, including to adopt net zero target by 2070."
  • India noted as "currently one of the world's largest emitters, still heavily reliant on coal for electricity generation."
  • Emphasis that "it will be important to follow through with specific actions to contain emissions over the current decade."
• IMF climate work:
  • Promotion of international carbon price floor proposal.
  • Integration of climate change into IMF surveillance and capacity development, with a special focus on Africa.

Africa: debt, Common Framework, and country-specific updates

• Zambia:
  • "Discussions on a possible program under an ECF, Extended Credit Facility, with the Fund are set to begin today."
  • Zambia's debt described as "unsustainable"; IMF "would need sufficient financing assurances from creditors before a staff level agreement on an extended credit facility could move forward."
  • Zambia "has sought comprehensive debt treatment under the G20 Common Framework" and is "in discussions with private creditors."
• Chad:
  • Official creditors in the creditor committee "issued a statement over the summer supporting an envisaged IMF support program for Chad and they committed to negotiate the debt restructuring terms accordingly."
  • Need for "a credible debt restructuring process with private credits to unlock the official financing that Chad urgently needs."
• Ethiopia:
  • "Welcome the formation of the creditor committee for Ethiopia under the G20 Common Framework."
  • Given "heightened uncertainty on the ground and its impact on the macroeconomy, amid significant donor support, it's difficult to move to program discussions at this stage," but IMF stands ready to engage when the time is right.
• Sudan:
  • Boards of the World Bank and the IMF "approved Sudan's eligibility for debt relief under the HIPC initiative" over the summer; HIPC is a milestone-based process.
  • Sudan "currently has an extended credit facility arrangement from the IMF which was approved ... in June."
  • "Disbursements under the IMF arrangement are conditional on the boards, our executive board's completion of a review which, in this case of Sudan, could take place at the earliest at the end of March 2022."
  • It is "too early to tell if the momentum toward HIPC completion point will be impacted by recent developments" (referencing recent events in Sudan).

Argentina: negotiations and IMF engagement

• Kristalina Georgieva met with President Alberto Fernandez on the sidelines of the G20 in Rome; meeting characterized as "good and productive."
• IMF-Argentina engagement:
  • IMF staff and Argentine authorities "continue to work closely together with the view of deepening the technical work toward an IMF supported program."
  • To the best of IMF's knowledge, the envisaged arrangement is an "EFF, Extended Fund Facility."
  • Deputy director Julie Kozack and Louis Cubeddu met with Finance Minister Martin Guzman; Executive Director Sergio Chodos participated.
  • Minister Guzman addressed rumors about a waiver and characterized them as an "unfounded rumor."
• Surcharge policy:
  • Managing Director stated an informal IMF executive board meeting had already taken place in "[September]" on the topic.
  • The G20 communique mentioned further discussion of surcharge policy "is expected to take place at the IMF board in the context of a broader discussion of a precautionary balances interim review."
  • That review "is currently expected later this year." No specific date provided.

El Salvador and Lebanon: program prospects and technical discussions

• El Salvador:
  • "Virtual discussions with the government began earlier this year around April."
  • "Progress has been made since then toward measures needed for a potential program supported by the IMF."
  • The authorities and staff "have agreed to complete the 2021 Article IV consultation in the coming months," which would allow time to prepare a full assessment of policy measures underpinning a potential program.
• Lebanon:
  • IMF "has received a letter from Prime Minister Mikati of Lebanon expressing the authority's interest in a Fund program."
  • "Preparatory technical discussions have started."
  • Kristalina Georgieva "met with Prime Minister Mikati the last week" (relative to briefing) and signaled readiness to "redouble our efforts to help Lebanon."
  • IMF reaction to reports it "buried information about a hole at the central bank": characterized the report as "absolutely untrue and false."

IMF data integrity and follow-up work

• Clarification:
  • Questions about integrity were "never about the IMF's data or the processes."
  • Executive board "made explicitly clear that they had full confidence in the impartiality and the analytical excellence of IMF staff."
• IMF commitment:
  • IMF "committed to continuous improvement and strengthening" data, research, and analysis.
  • IMF "will work with our board and staff to consider additional proactive steps to further ensure the robustness and integrity of the IMF data, research, analysis."
  • No specific steps or timeline provided.

Other procedural and operational notes

• Press briefing embargo: "we will be embargoed until 10:30 a.m. Washington time."
• Media relations contact given: "PRESS OFFICER: Maria Candia Romano Phone: +1 202 623-7100 Email: MEDIA@IMF.org @IMFSpokesperson."
• Closing remark: technical engagement and outreach ongoing; next briefing referenced as "in a couple of weeks' time."

Transcript of IMF Press Briefing — November 4, 2021, IMF Communications Department.

References

• https://www.imf.org/sitecore/service/notfound.aspx?item=master%3A%7B8D1E6EAB-2E82-47BE-B9FE-258FFB4CBC4A%7D%40en
• Sudan and the IMF
• Argentina and the IMF
• Chad and the IMF
• El Salvador and the IMF
• India and the IMF
• Lebanon and the IMF
• The Federal Democratic Republic of Ethiopia and the IMF
• Zambia and the IMF
• IMF Policy Advice -- A Factsheet
• Heavily Indebted Poor Countries -- A Factsheet
• Transcripts
• PRESS CENTER
• https://www.imf.org/en/home